From Farnham Street:
When Brad Stone met with Jeff Bezos to solicit his cooperation for the book, Stone wasn’t prepared for one of Bezos’s questions: “How do you plan to handle the narrative fallacy?”
The narrative fallacy, Bezos explained, was a term coined by Nassim Taleb in his 2007 book The Black Swan to describe how humans are biologically inclined to turn complex realities into soothing but oversimplified stories. Taleb argues that the limitations of the human brain resulted in our species’ tendency to squeeze unrelated facts and events into cause-and-effect equations and then convert them into easily understandable narratives. These stories, Taleb wrote, shield humanity from the true randomness of the world, the chaos, of human experience, and, to some extent, the unnerving element of luck that plays into all successes and failures…
In Taleb’s book — which, incidentally, all Amazon senior executives had to read — the author stated that the way to avoid the narrative fallacy was to favor experimentation and clinical knowledge over storytelling and memory.